Following the national recession, there has been a lack of new developments in the two cities and occupiers may begin to look beyond them for sufficient accommodation.
Whilst this problem is not immediately noticeable, the lack of high-quality office space is likely to create a ‘development vacuum’ in the city’s office markets.
According to a report by Ryden, property consultants and chartered surveyors, “Unlike previous property market recessions, there has not been a huge oversupply of new buildings.
However, current activity will reduce city centre supply. With no new starts we could quite easily face a critical shortage by 2012 into 2013.”
Their most recent survey showed occupation of Glasgow office space fell by a quarter over the previous six months, though the 12-month total was similar to the previous year. In Edinburgh the six-month total has increased, but the 12-month total is a quarter lower than the 10-year average.
Ryden also stated that there were no new major office developments planned for completion in Edinburgh before 2013, and that prospects for a solid regeneration for the market were ‘mixed’.